It’s an undeniably tough market for automakers and suppliers. Suppliers, especially, are grappling with uncertainty about the trajectory of electric vehicle production. The complexity deepens as hybrid technologies may require them to juggle investments across three distinct technologies.
Tier 1 suppliers may be lucky enough to participate in discussions with automakers to help inform their strategic planning. At the very least, they can see how their orders are trending. By contrast, Tier 2 and Tier 3 suppliers seldom have the benefit of direct conversations.
Regardless, suppliers these days are increasingly reliant on peer conversations and market signals to shape their long-term strategies. Yet it can be dangerous to base strategic plans on just a “leading indicator” or two, particularly in volatile times like this. Watching how a single canary is faring in the proverbial coal mine isn’t enough. Therefore, suppliers must broaden their view beyond traditional indicators.
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